Turns out value-add investment strategies, in which developers renovate older apartment buildings, can make apartments too expensive for many lower-income renters, according to industry experts.
“As an industry, we are taking too many class-C apartments and trying to make them class-As,” says Daryl Carter, founder and CEO of Avanath Capital Management, an investment firm based in Irvine, Calif., that focuses on renovating older apartments.
Firms like Avanath take a different approach. They try to renovate apartments in ways that modestly increase rents and also repair deferred maintenance problems like leaky roofs and pealed paint. That can help keep the buildings operating while keeping the units affordable for middle-income renters for decades to come.
Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.